The Central Bank of Nigeria (CBN) has reiterated that the ongoing bank recapitalization drive is fundamental to achieving the nation’s ambition of growing into a $1 trillion economy by 2030.
CBN Deputy Governor, Corporate Services, Ms. Emem Usoro, made this assertion during the 36th CBN seminar for finance correspondents and business editors, themed “Playing the Global Game: Banking Recapitalization Toward a $1 Trillion Economy.”
Represented by the Acting Director, Corporate Communications, CBN, Mrs. Hakama Sidi Ali, she stressed the importance of strengthening the banking sector to withstand global shocks and to finance critical sectors of the economy. She emphasized that recapitalization is essential for banks to remain resilient, stable, and capable of supporting national development through efficient financial intermediation.
“Building a one trillion-dollar economy is not an easy task. It would require careful planning, robust and clear policy direction, dutiful implementation, and unwavering commitment from stakeholders across all sectors,” Usoro noted.
She pointed out that Nigeria’s current economy stands at approximately $250 billion, highlighting the need for significant efforts and collaboration to meet the $1 trillion goal.
Reflecting on history, she mentioned the 2004 banking consolidation, which raised banks’ minimum capital base to N25 billion and reduced the number of banks from 89 to 25, as a strategic move that helped reposition the financial system for growth.
Also speaking at the event, the Managing Director of United Bank for Africa (UBA), Mr. Oliver Alawuba, underscored the importance of enhancing the ease of doing business in Nigeria, noting that the country currently ranks 131 out of 190 countries globally.
He stated that recapitalization is essential to building resilience against inflation and aligning Nigeria’s financial system with global standards.
He said while advanced economies have bank assets ranging from 70% to 150% of GDP, Nigeria stands at just 11.97% as of 2024.
On the way forward, he advocated for long-term incentives such as tax breaks for banks involved in infrastructure funding, partial CRR refunds tied to development financing, and enabling legislation to support long-term capital mobilisation.
“Bank recapitalization is more than a regulatory exercise; it is the foundation of Nigeria’s economic renaissance,” Alawuba said.
“Stronger banks mean stronger capacity to finance the sectors that matter most – infrastructure, mining, manufacturing, technology, and housing.”
He stressed the need for a diversified economic mindset, pointing to mining as a key growth driver. Citing examples from Ghana and Mali, where mining significantly contributes to GDP and export revenue, he said Nigeria must tap into its vast mineral resources to spur economic transformation.
“A well-diversified economy is essential to achieving resilience and inclusive prosperity,” he said.
“Recapitalized banks must look beyond oil and gas and channel capital into high-growth sectors such as ICT, agriculture, renewable energy, creative industry, and particularly, mining – which holds immense potential for GDP growth, foreign exchange earnings, and job creation.”